Against the backdrop of the recent CBN ban on cryptocurrency, Vice President Yemi Osinbajo says there is a need for the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) to come up with robust regulations for cryptocurrencies.
In a video seen by TheCable on Friday, Osinbajo said the disruption caused by cryptocurrencies will challenge traditional banking and also give room for efficiency and progress.
“Clearly, the future of money and finance especially traditional banking must be exciting as it is frightening but as we’ve seen in many other sectors disruption makes room for efficiency and progress,” he said.
“I fully appreciate the position of the CBN, the Securities and Exchange Commission (SEC) and some of the anti-corruption agencies on some of the abuses of cryptocurrencies and their well-articulated concerns.
“I believe their position should be the subject of further reflection. There is a role for regulation here and it is in the place of our monetary authorities and SEC to provide a robust regulatory regime that addresses these serious concerns without necessarily killing the goose that might lay the golden eggs.”
The CBN ban on cryptocurrency
In a CBN ban on cryptocurrency, the regulatory body recently directed banks and other financial institution to close accounts of persons or entities involved in cryptocurrency transactions.
The CBN argues that cryptocurrencies pose the risk of loss of investments, money laundering, terrorism financing, illicit fund flows and other criminal activities.